Brazil's Vale will invest $1.9 billion to shut down nine dams

Vale said it will spend $1.9 billion for the decommissioning of nine tailing dams in the Brazilian state of Minas Gerais.

LatAm Vale will invest between $150 million and $200 million in 2019

The company will invest between $150 million and $200 million in 2019, around $500 million in 2020 and between $150 million and $200 million in the following years. The company also said it will be investing in ongoing assessments on engineering projects and expenses for other geotechnical structures.

Vale’s announcement follows a dam burst in January that killed hundreds - its second such disaster in three years.

The company had already said it would invest $1.9 billion to decommission nine dams, but had not provided details on how the money would be deployed.

In the securities filing which includes slides for investors, Vale said two upstream dams will be completely decommissioned in three years. Another five will be transformed into downstream dams prior to decommissioning and two will have safety factors increased prior to decommissioning. ■